The General Assembly finalized the state’s Fiscal Year 2027 budget on Monday, with both chambers passing the Budget Bill (SB 282) and the Budget Reconciliation and Financing Act (SB 284) following conference committee.
The FY27 budget exceeds benchmarks set by the Spending Affordability Committee, maintaining a $250 million general fund balance and reducing the structural shortfall to $552 million. The State also preserves $2.4 billion in cash resources, including $2.2 billion in the Rainy Day Fund. General fund spending decreases by $91 million compared to FY 2026, while overall spending grows modestly by 1.2%.
The budget restores $20 million for behavioral health services and $27 million in disparity grants to local governments. Further, the budget includes investments to support critical services to support individuals with developmental disabilities, reduce child care waitlists, expand access to pre-K education, support nursing homes, and economic development initiatives.
The spending plan further includes $125 million in support of innovation and job creation initiatives. These investments will support emerging industries such as quantum computing and other large employers expanding in Maryland. The budget will fully fund the Blueprint for Maryland’s Future by including $10.1 billion in State support for education and a $335 million increase in direct aid to local schools.
With $16.8 billion in Medicaid funding, the State will continue to provide coverage to approximately 1.5 million Marylanders, while also supporting efforts to ensure continued enrollment under new federal requirements set forth in the One Big Beautiful Bill Act. Lastly, it allocates $100 million to reduce energy bills, alongside expanded assistance programs for households.
The budget now heads to the Governor for signature.
Conference Committee Report on Senate Bill 282 – the Budget Bill
